- Major crypto hedge funds like Pantera Capital and Chainview Capital have posted strong gains in 2023 after plunging in 2022. Some funds are up 80-100% year-to-date.
- Optimism is growing for a potential “token mania” in 2024 if U.S. regulators approve bitcoin ETFs. Investor interest is increasing again as crypto prices rise.
- After a disastrous 2022, the crypto hedge fund industry is recovering in 2023. With crypto prices rebounding and sentiment improving, the stage seems set for big gains if Bitcoin ETFs are approved.
The crypto hedge fund industry was battered in 2022, but funds that survived are now thriving again. Some are even gearing up for a potential crypto boom in 2024.
Major Crypto Funds See Big Gains in 2023
Pantera Capital‘s liquid-token fund gained nearly 80% this year after plummeting 80% in 2022. Chainview Capital, run by Dan Slavin, has doubled in value after declining 18% last year.
Stoka Global LP, led by former Goldman Sachs banker Naveen Choudary, rose 268% year-to-date through November after investing predominantly in altcoins.
While most funds haven’t matched Bitcoin’s 150%+ surge, the recovery is a welcome change after the FTX collapse contributed to the closure of about one-third of all crypto hedge funds.
Optimism Growing for a “Token Mania” in 2024
The potential U.S. approval of Bitcoin exchange-traded funds is fueling optimism around further crypto gains.
Slavin said the current mood resembles early 2020, right before Bitcoin broke out to reach its record highs. Investor interest is picking up again with bitcoin’s rise, and hedging costs remain low.
“It’s looking like there’s going to be another token mania coming,” said Slavin.
Conclusion
After a catastrophic 2022, the crypto hedge fund industry is showing strong signs of recovery in 2023. Major players like Pantera Capital and Chainview Capital have already posted triple-digit returns, and many firms foresee even bigger gains if U.S. regulators approve Bitcoin ETFs. Sentiment is improving as crypto prices climb off their lows, setting the stage for a potential token frenzy in 2024.
